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Status of IFMS
1
IFMS Background
• The IFMS project is aimed at replacing aging and fragmented financial (including Payroll), supply chain
and human resource (HR) management systems, and associated ageing technologies, across national
and provincial departments.
• The project was approved by Cabinet on 14 September 2005 as a joint project between: National
Treasury (NT) as the project sponsor and policy owner for financial and supply chain management (SCM)
in the Public Service; DPSA as the policy owner for HR management and information and communication
technology and SITA as the solution provider and prime systems integrator (PSI).
• Phase I culminated in a submission to Cabinet in 2005 (Cabinet Memorandum 16 of 2005) to obtain
approval for the continuation of the IFMS. Based on the Memorandum, Cabinet took a number of
decisions at its meeting on 14 September 2005 of which the following should be highlighted for purposes
of this report:
– All financial management (including payroll), supply chain management and human resource systems should be
provided centrally.
– All related independent systems renewal initiatives at national and provincial departments must be suspended.
– The independent applications used by the North West, Gauteng and Limpopo provinces, the Department of Defence
(DoD) and the South African Police Service (SAPS) should be migrated to a new central solution or solutions (IFMS).
– The new financial management, integrated SCM (with the exception of the procurement management module) and
payroll systems should be developed and managed by SITA.
– The new HR and procurement management systems should be acquired and managed by SITA as commercial-off-
the-shelf (COTS) systems.
•
IFMS Scope: Modules
Financial
Management
(GL)
Inventory
Management
Asset
Management
Procurement
Management Catalogue
Management
SCM HR
Payroll
HRM
BI
1
IFMS Benefits
• Automate of business processes to ensure greater efficiencies in process execution and
improve quality and access of data.
• Support the implementation of the Public Finance Management Act, Public Service Act, and
other relevant legislation by providing centrally hosted secure financial, supply chain and HR
management solutions.
• Will greatly improve the general control environment, assist in reducing the incidents of
fraud or the early detection thereof, and help to minimise the level of corruption in supply
chain management processes.
• Result in development of Information and Communication Technology (ICT) skills within the
country.
• Reduce duplication of financial type systems use by government.
• Provide visibility into the departments financial, human resource management, payroll and
supply chain management position by providing easy and secure access to data via a
multitude of reports.
IFMS Product Development Status
Development Completed
Supply Chain Management
Core
Asset Management
(2010)
Procurement Management
(2011)
Catalogue management (2011)
Human Resource
Management
(2010)
Development Completed and
Being Tested
BI Vulindlela Replacement
(planned lead site
implementation 2013)
Supply Chain Management:
Inventory Business
Functionality
(planned lead site
implementation 2013)
Development Planned
Supply Chain Management: Services Procurement
(commencement dependent on approval of proposal by National Treasury and DPSA)
Development Underway
Financial Management Core
(Some components have been
developed and unit tested -
planned development
completion 2013)
Payroll
(planned completion TBD –
dependent on service provider
to be sourced)
IFMS Human Resource
Management and PERSAL
Interface – Organisational
Management and Personnel
Admin
(planned development
completion 2013)
Development Completed,
Test Completed and Ready
for Lead Site Implementation
IFMS Human Resource
Management and PERSAL
Interface – Leave Component
(planned implementation 2013)
IFMS Lead Site Implementation Status
Completed
Procurement Management
National Treasury SCM
Operations and National Treasury
Contract Management
Asset Management
National Treasury
Limpopo Department of Treasury
Limpopo Department of Roads
and Transport
Limpopo Department Local
Government and Housing
Limpopo Department of
Agriculture
Human Resource Management
Public Service and Administration
In Progress
Asset Management
Limpopo Department of Health
Department of Defence
Human Resource Management
Free State Department of
Education
Procurement Management
Department of Defence
Planned
Payroll
Department of Public Service and
Administration
Finance Core
National Treasury
Inventory
National Treasury
Services Procurement
National Treasury
IFMS HRM and Persal
Interfaces
Department of Public Service and
Administration
Free State Department of
Education
1
IFMS Brief Status Per Module
• Payroll: Attempts to source a service provider to develop, maintain and support the module were
unsuccessful. During the last attempt the RFB was withdrawn to allow additional time for engagement
between National Treasury, SITA and DPSA on the approach (i.e to acquire a Commercial-Off-the-Shelf
solution or to do bespoke development as stipulated in the Cabinet Memo of 2005).
• Financial Management: Accenture was contracted via a formalised RFB process to develop, maintain
and support the module. To-date, the project has progressed approximately 52% of which specifications
were completed and some functionality developed and unit tested.
• Business Intelligence: There are two development initiatives ie Business Intelligence Vulindlela
Replacement and Business Intelligence for IFMS.
– Praxis was contracted to develop the Business Intelligence Vulindlela Replacement module, an
interim solution intended to replace the current legacy Vulindlela legacy business intelligence
solution.
– The development of the modules was completed and data migration has commenced. The
development of Business Intelligence for IFMS is in the initial stage.
• HRM: A SAP module was acquired from SAP for IFMS HRM, implemented at DPSA and is being used.
The module is being implemented at Free State Department of Education.
• SCM: The SCM system will enable departments to generate demand forecasts, plan and execute
procurement processes, effectively manage assets, and balance inventory across the supply chain. It
consists of: Catalogue Management; Item and Service Master; Asset Management; Procurement
Management and Inventory Management.
1
IFMS Brief Status Per Module
• SCM (continued)
– Catalogue Management: Acquired from PiLog, implemented at National Treasury and is being
used.
– Asset Management , Item and Service Master: Modules were developed , have been / are being
implemented at lead sites and operationalised (supporting, stabalising and ensuring functional fit).
The modules were implement at National Treasury andLimpopo: Provincial Treasury, Department of
Roads and Transport, Department of Local Government and Housing, and Department of Agriculture
and is not being used. The modules are being implemented at Department of Defence and Limpopo
Department of Health has been delayed.
– Procurement Management (supply chain management operations, transversal contract
management* and services procurement): • A module was acquired from Oracle for Supply Chain Management Operations and Transversal Contract
Management, it was Implemented at National Treasury. The module is been implemented at Department of
Defence and implementation has been delayed.
• Supply Chain Management Operations is being used at National Treasury and is being operationalised.
• Transversal Contract Management is not being used. It was used during the initial implementation and
subsequently whilst using the module, requirements emanated that were not catered for. The module is
currently being amended to accommodate these requirements
– Services Procurement, Module acquisition is being planned for.
– Inventory Management: the module has been developed and software integration testing is in
progress. Product User Acceptance Testing and Lead Site implementation is being planned for.
The detailed status for Supply Chain Management, Human Resource Management and Business Intelligence follows.
1
SCM Status: Procurement Management
• Supply Chain Management Operations
– A module was acquired from Oracle for Supply Chain Management Operations and Transversal
Contract Management, it was Implemented at National Treasury as a Lead Site. Supply Chain
Management Operations is being used and is being operationalised. Transversal Contract
Management is not being used. It used during the initial implementation and subsequently whilst
using the module, requirements emanated that were not catered for. The module is currently being
amended to accommodate these requirements
– The module and is being used. The module The module is currently being implemented at
Department of Defence and implementation has been delayed.
• Services Procurement
– Module acquisition is being planned for.
1
Supply Chain Management
1
Supply Chain Management (SCM) Scope
• The SCM system will enable departments to generate demand forecasts, plan and execute
procurement processes, effectively manage assets, and balance inventory across the
supply chain. It consists of:
– Catalogue Management, consistent classification of uniquely identified items and services.
– Item and Service Master, addition of Item Management data e.g. Commodity Manager, Item
Control and Supplier information to improve governance and control.
– Asset Management, control and visibility of assets through the complete government asset life-
cycle.
– Procurement Management, manage procurement processes (supply chain management
operations, transversal contract management* and services procurement) throughout the full
procurement life cycle, beginning from the point where a requirement has been identified (approved),
through to awarding and managing a contract with a supplier to provide the required service and
payment thereof.
– Inventory Management, controls receipt, issue and distribution of items, monitoring of stock levels,
placing of requisitions, and maintenance and control of items.
* Note: Only National Treasury will utilise Transversal Contract Management functionality to source suppliers for
transversal type goods and services
1
SCM Status: Catalogue Management, Item and Service Master and Asset Management
• Catalogue Management module
– Acquired from PiLog, implemented at National Treasury and is being used.
• Item and Service Master and Asset Management modules
– Modules were developed , have been / are being implemented at lead sites and operationalised (supporting,
stabalising and ensuring functional fit).
– Lead Sites Implemented
• National Treasury
– The module is not being utilised due to organisational change management not being effective.
Furthermore, there is a requirement for electronic data capturing functionality for assets
• Limpopo: Provincial Treasury, Department of Roads and Transport, Department of Local Government and
Housing, and Department of Agriculture
– The module is not being utilised due to organisational readiness (e.g. Insufficient staff capacity) and
expectations on the system i.e. The National Transport legislation requires the Vehicle Identification
Numbers (VIN) as the primary identifier where the Provincial Policy requires the bar code number as the
primary identifier. The IFMS complies to the National Transport Legislation, however it makes provision
for secondary identification numbers such as bar code and vehicle registration number.
– Lead Sites Currently Being Implemented
• Department of Defence: Implementation delayed due to the Department requiring a hosting architecture that
meet their legislative security requirements. A federated hosting approach was recommended to the
Department to support a separate instance of IFMS for Department . The Department accepted the approach in
principle pending a detailed write up of the solution by SITA and representatives from the Department . The
drafting of the document has been initiated and will be detailed during the work sessions to be held between
SITA and DOD.
• Limpopo Department of Health: Implementation delayed due to the Department not being able to asset data in
a format as required by the IFMS. National Treasury and SITA to visit Limpopo and address the matter.
1
SCM Status: Procurement Management
• Supply Chain Management Operations
– Module acquired from Oracle and is being operationalised.
– Implemented at National Treasury as a Lead Site and is being used.
– Currently being implemented at Department of Defence. Implementation delayed due to Department
of Defence requiring a hosting architecture that meet their legislative security requirements. A
federated hosting approach was recommended to the Department of Defence to support a separate
instance of IFMS for Department of Defence. The Department accepted the approach in principle
pending a detailed write up of the solution by SITA and representatives from the Department . The
drafting of the document has been initiated and will be detailed during the work sessions to be held
between SITA and DOD.
• Transversal Contract Management
– Module was acquired from Oracle and is being operationalised.
– Implemented at National Treasury as a Lead Site and is currently not being used. The module was
used during the initial implementation and subsequently whilst using the module, requirements
emanated that were not catered for. The module is currently being amended to accommodate these
requirements
• Services Procurement
– Module acquisition is being planned for.
1
SCM Status: Procurement Management
• Key PMM enhancements releases up until October 2013
– A release to production (for usage) was done on 9 April 2013. It included enhancements such
as New Standard Chart of Accounts; PMM integrating SARS required information to BAS (Tax
Clearance Numbers, Bank Accourt Holder Name, Approval Indicator, Country of Issue, Identification
Number and Company Registration Numbers) and an additional 43 outstanding change requests
– A release to production is planned for 31 May 2013. Enhancements such as PPPFA,
Government General Matrix Report, Government Suppliers Awarded Report and Government Non
Award Report has been made and the module has already been released for user testing.
– A release to production is planned for 15 June 2013. It will include enhancements such as
workflow to cater for multiple authorisers , vacation rules on invoicing and visibility of Banking
details and cost centre allocations, Integration to Inventory, and SCOA Item Matching field
– A release to production is planned for 15 October 2013. It will include enhancements such as
integration to other IFMS modules as well as BAS, outstanding PMM audit findings changes
(management of Supplier information, enforce four way matching, decimal values not allowed in
quantities, price break functionality, vendor type and Vat number must be mandatory)
• Documentation in the process of being updated based on findings from NT internal auditors: Update of
URS, Finalise Access Management Policy and Procedure and Update development and implementation
methodologies.
1
SCM Status: Inventory Management
• Development (excl integration into other IFMS modules) of agreed upon scope
has been completed.
• Software integration testing is in progress.
• Product User Acceptance Testing and Lead Site implementation is being planned
for.
• Delays in development experienced primarily due to lack of resources within
SITA.
1
SCM Key Challenges
• Organisational readiness to adopt and operate SCM modules – Change management to be strengthened
and organisational readiness checklists to be completed to ascertain organisational readiness levels.
• Constraints and SITA capacity to acquire, develop, enhance, and integrate inclusive of enhancing
transversal contracts functionality to meet business requirements – SITA Turnaround Strategy underway,
Capacity augmented/to be augmented with industry partners, and source capacity from with SITA
(external to IFMS).
• Unsigned key documentation such as User Requirements Specifications, Project Charter and Concept of
Operations (the latter two for Inventory Management), Project Closure report for Catalogue Management
– The matter has been escalated to IFMS SLA Committee and the responsible stakeholder has been
requested to ensure the documents are signed.
• Availability of users to conduct product user acceptance testing – test schedule to be circulated in
advance, user identified and to be scheduled accordingly.
• Delay in identifying ownership of master data and establishment a master data governance office – the
matter was escalated to the IFMS SCM Product Board to address.
• No agreement by SLA Committee operationalisation costs – the matter was discussed at the IFMS SLA
Committee and finance agreement options are being looked into.
1
SCM Lessons Learnt
• SCM programme proved to more complex than originally envisaged
• Restricted time frames
• Governance issues
• Longer than planned procurement and contract negotiation processes
• Lack of sufficient capacity in key stakeholders
• Mutual understanding between different stakeholders of respective limitations and
requirements
• Readiness and change management issues in lead sites
18
Human Resource Management
1
Human Resource Management (HRM) Scope
• The human resource management system will enable departments to comprehensively plan
and manage its organizational structure, post establishment and workforce throughout the
human resource management lifecycle in a formalized and thorough manner. Furthermore,
employees will be allowed to transact with the system by using the employee self service
functionality.
• The Human Resource Management system makes provision for the following functionalities – Manage Organisation Structure and Post Establishment
– Manage HR Planning
– Recruitment Management
– Termination of Services
– Employee Movement
– Career Management
– Performance Management
– Education, Training and Development
– Remuneration Management
– Manage Labour Relations
– Manage Health and Safety
– Human Resource Reporting
1
HRM Status
• A SAP module was acquired from SAP for IFMS HRM, implemented at DPSA and is being
used.
• Lead Site Implemented
– Implemented at DPSA and is currently being utilised, however users are required to double capture
information IFMS HRM and PERSAL in order to get access to Payroll functionality
• Lead Site Implementation
– Free State Department of Education
• The solution has been configure and testing (software integration and system integration) has
been completed. Product User Acceptance Testing, Data Migration and Training still needs to
be done.
• Implementation has been delayed due to:
– The Department is not willing to double capture information in the same way that DPSA
does.
– The Department does not have sufficient funds to upgrade the hardware and network
infrastructure to the level required by IFMS and for operationalisation of the module.
1
HRM Status: Key Development Activities
• IFMS HRM performance management functionality is being extended to cater for all DPSA’s
requirements. A Change Request to bring about the required changes has been approved
by the IFMS HRM Product Board and development will commence.
• eRecruitment functionality has been developed and tested. The landing for citizens to apply
for positions is planned to be developed as well as the piloting of the functionality at DPSA.
• An electronic interface between IFMS HRM and PERAL is being developed and once
implemented it will eliminate double capturing of data. The interface has three components,
i.e. Leave Management, Personnel Administration and Organisational Management.
– Leave Management: Development and testing (system integration testing and product user
acceptance testing) has been completed
– Organisational Management and Personnel Administration: Development have been completed and
the functionality is currently being tested (system integration testing) after which product user
acceptance testing will be done
1
IFMS Conclusion and Way Forward
• Execute various audits to establish accurate status quo and identify project risks;
• Establish a project management office within NT;
• Review and update all user requirements (including infrastructure);
• Evaluate and decide on the appropriateness of the solutions acquired;
• Determine new and realistic timelines for deliverables and implementation (roll out strategy);
• Review the concept of lead site testing;
• Quick wins on the legacy system